Silver 1 OZ 999 NY (XAG=X) $15 level of course will offer support

Silver 1 OZ 999 NY (XAG=X) $15 level of course will offer support

Silver 1 OZ 999 NY (XAG=X) $15 level of course will offer support

Silver markets pulled back during thin trading on Monday as traders came back from the weekend. With the holiday schedule, and of course volume would have been late, so I don’t read too much into the pullback other than the 61.8% Fibonacci retracement level offered a bit of a bid. Below there, I think the $15 level of course will offer support as well, so I think it’s only a matter of time before we bounce.

Quite frankly, I have no interest in shorting Silver, because the US dollar, although strengthening over the last couple of days, has to deal with the Federal Reserve changing its stance over the last couple of days. That being the case, the market looks likely to punish the US dollar of the longer-term. I look at pullbacks and silver as an opportunity to pick it up at a better price, as I do believe the longer-term trajectory in silver is going to be higher.

Overall, the bias in prices is: Sideways.

By the way, prices are vulnerable to a correction towards 15.13.

The projected upper bound is: 15.62.

The projected lower bound is: 14.86.

The projected closing price is: 15.24.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 white candles.

Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 16.3680. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 10 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 48.02. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 7 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -236.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 10 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 5 period(s) ago.

Rex Takasugi – TD Profile

PREC.M.XAG= closed down -0.100 at 15.220. Volume was 8,900% above average (trending) and Bollinger Bands were 17% wider than normal.

Open High Low Close Volume___
15.322 15.363 15.150 15.220 9,344

Technical Outlook
Short Term: Oversold
Intermediate Term: Bullish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 15.54 14.84 15.29
Volatility: 11 16 19
Volume: 934 187 47

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

PREC.M.XAG= is currently 0.5% below its 200-period moving average and is in an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect very strong flows of volume out of XAG= (bearish). Our trend forecasting oscillators are currently bullish on XAG= and have had this outlook for the last 30 periods.

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